The Tipflation Trap – Who Eats the Cost?

Tipping used to be simple: good service meant leaving something extra. These days, tips seem like mandatory surcharges, and customers are fed up. In this episode, Aaron and Melissa unpack the growing cultural frustration around “tipflation” and why it’s becoming an increasing pressure point for all involved. We debate who really bears the cost in today’s hospitality economy and look at this from all sides. Joining us is expert restaurant consultant Mark Moeller, founder of the consulting firm The Recipe of Success, who brings over four decades of experience in restaurant operations and turnaround. Together with Mark, we examine rising labor costs, the psychology of paying, fee transparency, and how to make practices around tipping more sustainable and digestible. Practical Takeaways For Consumers: ● Consider tipping after service is complete ● Speak with management before leaving damaging reviews ● Recognize tipping is tied to systemic wage structures For Operators: ● Prioritize price and fee transparency ● Use POS data to fairly allocate tip pools ● Invest in training to justify value perception ● Avoid arbitrary surcharges that erode trust The “Fix” (At Least for Now) The group proposes: ● Transparent pricing models ● Reduced reliance on hidden fees ● Introduce enticing customer rewards that reinforce tipping behavior ● Continual experimentation with patience and grace on all sides ● Industry-wide creativity and collaboration There is no overnight solution. But thoughtful policy adjustments, communication, and empathy between operators, staff, and customers may reduce friction. Guest Spotlight Mark Moeller Founder, The Recipe of Success National restaurant consulting firm specializing in operations, training, and financial analysis Website: recipeofsuccess.com Enjoyed the Episode? Instead of tipping the hosts, leave a five-star review on your favorite podcast platform. And if you're listening from a restaurant or coffee shop, consider showing appreciation to the team serving you. Subscribe for more deep dives where we fix big business problems with fresh perspectives. Mark Moeller https://www.linkedin.com/in/therecipeofsuccess/ Mark's website: https://recipeofsuccess.com • Website – www.wefixeditpod.com • Follow us on: Instagram – https://www.instagram.com/wefixeditpod LinkedIn – https://www.linkedin.com/company/wefixeditpod YouTube – https://www.youtube.com/@WeFixedItPod If you liked this episode, don’t forget to subscribe, leave a review, and share it with your friends! Keep listening to find out how we fix companies and put them back better than we found them. Disclaimer A quick disclaimer. We are going into this somewhat cold and nothing we say should be construed as legal advice, financial advice or anything that would get us in trouble. These are our views and opinions. We're here to ask the kinds of questions everyone's thinking, have an engaging conversation and maybe come to some conclusions that we feel are worth exploring. By the end, if we fixed it, you're welcome. All trademarks, IP and brand elements discussed are property of their respective owners. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.